Credit union losses adding up

Mon, July 09, 2012 - 12:00 AM

The 2011 financial year was a challenging one for the Barbados Workers’ Union Cooperative Credit Union Ltd which posted a loss of $229 353 for the financial year ended March 31, 2012, unlike its $817 296 profit the previous year.

The credit union also saw over 50 per cent more delinquency.

According to its 2011 annual report, the provision for losses on impaired loans increased by 16 per cent to $4.6 million.

The board’s report noted that the slow growth within the economy over the past year and its impact on the credit union’s members, especially those self-employed, resulted in more arrears.

“The credit union’s membership suffered adversely during the year due to lay-offs, reduced disposable income, business closures and high levels of inflation.

“Consequently, delinquency increased by 53 per cent over the previous year,” the board said, adding that management and staff continue to work with members to curtail any increase in delinquency.

Given the circumstances of the real estate market, the board said the credit union listed its Pinfold Street, Bridgetown property for sale, which resulted in an impairment of $671 783.

The recent closure of Almond Beach Resorts also resulted in an impairment of Almond shares valued at $42 999.

Meanwhile, operating expenditure, excluding the provision for bad loans, increased by nine per cent over the previous year.

For the year under review, the credit union disbursed a total of $21.4 million in new loans, up from $20.4 million in the previous year. (NB)